CAD/JPY Spotlight: Indicator of the Day

“INDICATOR OF THE DAY” - ICHIMOKU CLOUD

The Ichimoku cloud is a formidable trend indicator, that has proven to work specifically well in Yen analysis. The blue shading in the above chart is referred to as the “cloud” which ultimately is used to determine directional bias and the overriding trend. When the market is trading above the cloud, we are in an uptrend, and when we are trading below the cloud, we are in downtrend. Using this indicator can be quite insightful at times, with a closer look at the cross showing that despite the latest sharp pullback, the market is only just now testing support by the top of the cloud to indicate that the up-trend is still intact and could be poised for bullish resumption.

Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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Joel Kruger publishes 6 daily pieces:

“Tech Talk” – A Daily Video Highlighting Technical Developments in the Overnight Session of Trade.
Monday-Friday (between 5:30am-6:30am EST)

“Morning Slices” – Morning Overview using Fundamental, Technical, Flow, and Quantitative Analysis (Includes “Trade of the Day”).
Monday-Friday (between 6:30am-7:30am EST)

“Indicator of the Day”A Feature Report that Highlights our Most Significant Technical Indicator of the Day.
Monday-Friday (between 8:00am-9:00am EST)

“Midday Snapshot” – A Midday Fundamental Update, along with Technical Analysis of Selected Rates.
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“Daily Classical” – A Daily Technical Overview of the Major Currencies.
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